M-Akiba Review 2021

M-Akiba is a great way to invest in treasury bonds in Kenya using your mobile phone. Unlike in the past where you could only invest in government bonds of at least Ksh 50,000, with M-Akiba, you can invest as low as Ksh 3,000 with an increment of Ksh 500. M-Akiba interest rate is tax-exempt ensuring that you receive the best from it.

What is M-Akiba Bond?

What does Akiba mean? Akiba is a Swahili word for savings.

M-Akiba bond is a treasury bill that is issued by the National Treasury of Kenya through the Central Bank of Kenya. It is regulated by the Capital Markets Authority (CMA). It is used to finance government infrastructural development. It is fulfilled through a mobile bank like M-Pesa, Airtel Money and Pesalink. You can invest in the M-Akiba bond with a minimum of Ksh 3,000. It has a maturity period of 3 years while M-Akiba return interest is paid semi-annually. Once the bond has matured, you will be refunded the principal amount you invested.

M-Akiba Registration

To register on M-Akiba, you need to be a Kenyan citizen and be 18 years or above. You also need to have a mobile wallet like Mpesa. To register on M-Akiba:

  • Dial *889# using your phone
  • Set a new pin. To do so, input zero(0) to set a new one
  • Provide your ID card number
  • Read the M-Akiba bond terms and conditions
  • Then select “Yes” to agree to M-Akiba terms and conditions
  • You will be sent a confirmation message that you have successfully registered on M-Akiba
  • To access M-Akiba services, dial *889#

Is there M-Akiba app? No, at the moment there is no M-Akiba loan app. You can only invest in M-Akiba bonds using a USSD code.

Requirements for Investing in M-Akiba Bond

To register for M-Akiba, you need the following:

  • A mobile phone
  • A registered mobile number; Airtel or Safaricom
  • Have M-Akiba CDS account

How Does M-Akiba Work?

M-Akiba is a government bond investment platform using a mobile phone. To invest in the M-Akiba bonds, you only need to have a mobile phone. You can register for the M-Akiba bond by dialing *889# on your phone with a Safaricom or Airtel line. Once you have registered, it is not a guarantee that you will get an allocation. The allocation is done on a first come first serve basis.

M-Akiba registration and payment of interest is conducted by the Central Depository and Settlement Corporation (CDSC). The CDSC registers and maintains all CDS accounts. M-Akiba is a convenient investment option with a guaranteed exit option. You can sell the bond during normal trading hours during weekdays and from 9.00 am to 3.00 pm during weekends. To sell your M-Akiba bond, dial *889# and select the “sell” option and follow the steps. You can sell part or a total investment of your M-Akiba bond. Once your bond has matured, the principal amount is deposited to your M-Akiba CDS account. M-Akiba interest income is also deposited in the M-Akiba CDS account.

What is M-Akiba Interest Rate?

M-Akiba bond earns an interest rate of 10% per year. Interest is issued every six months. For instance, if you invest in Ksh 50,000, you will be getting Ksh 2,500 every six months, making it Ksh 5,000 at the end of the year.

Is M-Akiba Still Open?

The National Treasury through the Central Depository and Settlement Corporation (CDSC) announces when the M-Akiba bond is open. You need to check whether there is an open bond before you can invest in one. The bond is available from time to time and is not open always.

Does M-Akiba Give Loans?

M-Akiba is a mobile-based treasury bond where Kenyan citizens give loans to the government. Instead, it does not advance loans to individuals. The government used the loan to facilitate infrastructural development.

M-Akiba Secondary Market

You can buy the M-Akiba bond in the secondary market like the Nairobi Stock Exchange (NSE). You can buy the bond by dialing *889# using your mobile phone and select the “buy” option.

Central Depository and Settlement Corporation (CDSC)

The role of the Central Depository and Settlement Corporation (CDSC) in M-Akiba is to register bondholders and maintain CDS accounts. To invest in the M-Akiba bond, you need to have a CDS account. Note that the CDS account for M-Akiba is different from that of trading in shares.

Benefits of Investing in M-Akiba Bond

  • It is a low-risk investment tool with an annual interest rate of 10%
  • The interest income is tax-free
  • It is affordable with a minimum investment amount of Ksh 3,000
  • It is convenient and you can transact from anywhere using your mobile phone

Is M-Akiba a Good Investment?

M-Akiba has a rate of return of 10% yearly, making it a good investment. It is a great way to build your savings and increase revenues through M-Akiba interests. You can re-invest the interest that you earn. Therefore M-Akiba is a great investment that any Kenya should consider.

Final Word On M-Akiba 2021

M-Akiba is a great investment tool for Kenyans that is designed to enhance financial inclusion for economic development. It is also meant to encourage the saving culture among Kenyans. It is a safe and secure way to invest in treasury bonds with a minimum investment amount of Ksh 3,000. Grow your money by earning a 10% interest rate annually.

 

Research: Vincent Nyoike

Vincent is a writer with an interest in finance, business, technology and health niche. He holds a Bachelors degree in Applied Statistics with computing. Read more about Vincent and see our complete editorial team at FiFi.